Balance sheet data for Galaxy Energy as of 12/31/21 is as follows for Lease R:

Leasehold costs	$550,000
Less: Accumulated DD&A	($190,000)
Net leasehold costs	$360,000
Wells and related E&F—IDC	$2,800,000
Less: Accumulated DD&A—IDC	($1,150,000)
Net wells and related E&F—IDC	$1,650,000
Wells and related E&F—L&WE	$1,550,000
Less: Accumulated DD&A—L&WE	($220,000)
Net wells and related E&F—L&WE	$1,330,000

Galaxy’s activities during 2022 related to Lease R were as follows:

Exploratory dry hole drilled	$700,000
Development dry hole drilled	$750,000
Tanks, separators, etc., installed	$290,000
Production	280,000 bbl
Proved reserves, 12/31/22	2,800,000 bbl
Proved developed reserves, 12/31/22	2,500,000 bbl

Requirement:
 Calculate the Total Capitalization for 2022.